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NO.  94-821 90 


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Author: 


Bennett,  Robert  Joseph 


Title: 


Educational  training  of  an 
accountant 

Place: 

Philadelphia 

Date: 

[1912] 


COLUMBIA  UNIVERSITY  LIBRARIES 
PRESERVATION 

BIBLIOGRAPHIC  MICROFORM  TARGET 


MASTER    NEGATIVE   # 


ORIGINAL  MATERIAL  AS  FILMED  -     EXISTING  BIBLIOGRAPHIC  RECORD 


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MONreOMEMV 


Bennett,  Robert  Joseph,  1871- 

Educational  training  of  an  accountant,  by  R,  J. 
Bennett...  Delivered  before  the  Pennsylvania 
institute  of  cortified  public  accountants,  Phila- 
delphia, January  15,  1912...   Philadelphia, 
Bennett  accountancy  institute,  j-1912j, 

14  p.         22-^-  cm. 

Ileprinted  from  the  Journal  of  accountancy.  Hew 
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EDUCATIONAL  TRAINING 
OF  AN  ACCOUNTANT 


BY 


R.  J.  BENNETT,  B.S.C.,  CP.A. 


DEUVERED   BEFORE   THE   PENNSYLVANIA    INSTITUTE 
OF  CERTIFIED  PUBLIC  ACCOUNTANTS.  PHILADELPHIA 

JANUARY   15,    1912 


MONTGOMERr 


SCHOOL  OF  BUSINESS 


REPRINTED  FROM  THE  JOURNAL  OF  ACCOUNTANCY 

NEW  YORK  CITY 


BENNETT  ACCOUNTANCY  INSTITUTE 

PHILADELPHIA.  PENNSYLVANIA 


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Educational  Training  of  an  Accountant* 

By  R.  J.  Bennett 

Accountancy  has  grown  to  the  dignity  of  a  profession,  and 
the  accountant  is  its  exponent.     This  being  true,  then  the  success 
or  failure  of  the  profession  rests  in  the  hands  of  its  mentors,  the 
accountants  of  the  present  generation;  and  whatever  develop- 
ment it  may  make  in  the  future  must  depend  upon  the  attitude 
of  the  accountants  themselves  toward  the  institutions  of  learning 
into  whose  keeping  is  entrusted  the  educational  training  of  the 
future  practitioner.     May  I  ask,  Is  all  being  done  that  could  be 
done?    Does  each  accountant  of  this  State  realize  that  he  is 
charged  with  the  responsibility  not  only  of  maintaining  and  ex- 
tending his  own  clientele,  but  of  doing  something  toward  the 
betterment  of  our  profession?     Is   this   Pennsylvania   Institute 
extending  its  influence  in  the  cause  of  accountancy  education, 
and  is  it  satisfied  with  conditions  as  they  exist  at  the  present 
time?     There  can  be  no  central  stage — we  either  progress  or 
retrogress;  and  as  soon  as  we  allow  ourselves  to  become  apath- 
etic retrogression  begins.     Are  the  schools  now  giving  courses 
of  study  doing  their  duty  faithfully  and  efficiently,  and  if  not 
what  can  be  done  for  their  improvement  ?    Indeed,  it  is  not  only 
a  duty  which  we  owe  to  the  profession,  but  it  should  be  our 
pleasure  and  privilege  to  do  something,  whether  it  be  much  or 
little,  toward  giving  encouragement  and  providing  efficient  in- 
struction for  the  young  men  who  aspire  to  be  professional  ac- 
countants.    Does  not  every  accountant  in  this  State  look  with 
pride  upon  the  lasting  achievements  and  thoughtful,  kindly  con- 
sideration of  your  venerable  dean  of  the  accounting  profession, 
the  late  Charles  N.  Vollum !     May  we  in  turn,  gentlemen,  strive 
to  emulate  this  leader  who  has  passed  to  his  reward,  but  who 
will  live  for  years  to  come  in  the  hearts  and  memory  of  the 
hundreds  who  have  benefited  by  his  generosity. 

While  urging  an  unselfish  service  to  the  interests  of  profes- 
sional education,  I  do  not  for  one  moment  lose  sight  of  the  fact 
that  the  Pennsylvania  Institute  of  Certified  Public  Accountants 
has  already  done  a  lasting  service  to  the  profession  in  Pennsyl- 
vania, a  service  which  is  felt  even  to  the  extreme  borders  of  the 
United  States.     I  am  sure  that  the  welfare  of  rising  accountants 

•  Delivered  before  the  Pennsylvania  Institute  of  Certified  Public  Accountants.  January  is 


has  been  amply  provided  for  by  this  Institute  in  estabhshing 
authoritative  evetving  cottrses  of  preparation  under  the  direction 
of  the  University  of  Pennsylvania.  This  act  redounds  to  your 
credit,  and  many  young  men  have  already  had  occasion  to  bless 
you  for  the  exceptional  facilities  placed  at  their  disposal.  Nor 
must  we  forget  the  Pennsylvania  State  Board  of  Accountancy  in 
vi^hose  hands  rest  the  first  and  final  words  of  authority,  a  board 
composed  of  men  who  have  been  chosen  because  of  their  ability 
and  professional  standing  to  represent  the  State  in  guarding  the 
interests  of  the  profession  according  to  the  laws  of  Pennsylvania. 
The  board's  rules  and  requirements  are  clearly  defined,  its  atti- 
tude toward  candidates  fully  outlined  and  its  recognition  of  edu- 
cational stanidards  forcibly  stated.  The  high  standard  set  and 
maintained  is  a  credit  to  their  judgment,  since  it  places  their 
examination  requirements  on  a  plane  with  the  State  board  of  law 
exatniners  and  in  keeping  with  true  accounting  requirements, 
rather  than  on  the  level  of  ordinary  bookkeeping.  If  account- 
ancy is  a  profession  then  the  only  way  to  maintain  its  standards 
is  by  establishing  requirements  which  mean  something  and  which 
can  be  obtained  only  through  a  thorough  course  of  preparatory 
training.  The  board's  plan  of  outlining  juSt  what  shall  be  re- 
quired on  examinations  and  in  suggesting  the  departments  of 
law,  finance,  business,  industry,  accounting,  etc.,  to  be  studied 
has  opened  the  way  for  definite  methods  of  preparation.  We 
who  are  giving  instruction  are  not  left  entirely  to  our  own  initi- 
ative in  defining  the  courses  of  study,  since  they  have  been 
wisely  provided  for  in  the  official  outlines. 

The  Need  For  Technical  Instruction 

The  accountant's  work  is  enlarging  day  by  day  and  the  pos- 
sibilities of  the  future  can  hardly  be  conceived  at  this  time.  The 
profession  of  accountancy  is  indeed  in  its  infancy,  notwithstand- 
ing the  wondrous  strides  that  have  been  made  within  the  past 
decade.  In  case  every  business  concern  on  Market,  Giestnut, 
and  Arch  Streets  of  this  city  were  to  realize  the  benefits  that 
could  accrue  from  engaging  the  services  of  public  accountants, 
it  is  interesting  to  speculate  as  to  how  many  principals  and  as- 
sistants would  be  needed  for  the  work.  This  is  likewise  true  of 
the  other  sections  of  the  city  that  are  of  equal  importance  as 
business,  financial  and  industrial  centers.  This  method  of  spec- 
ulative reasoning  might  even  be  extended   to  other  cities  of 


importance  throughout  this  great  country  of  ours  with  the  only 
logical  answer  that  indeed  but  a  beginning  has  been  realized, 
and  that  the  avenues  for  future  development  are  guarded  by  the 
professional  brethren  themselves.  Even  a  brief  contemplation 
of  this  country's  greatness  must  convince  us  of  a  more  extended 
field  of  activity,  whose  plans  of  cost  finding  and  account  keeping 
must  necessarily  devolve  upon  the  skilled  accountants.  The 
wonderful  expansion  of  our  country's  foreign  trade  relations  is 
a  matter  for  rejoicing  to  business  men,  manufacturers,  financiers, 
and  accountants  alike.  Contemplate  the  boundless  resources  of 
this  country,  many  of  which  are  yet  undeveloped,  the  extensive 
domestic  and  foreign  commercial  activities,  the  billions  of  in- 
vested capital,  the  endless  chain  of  banking  facilities,  the  varied 
manufacturing  industries,  the  voluminous  exchange  of  commod- 
ities of  all  kinds,  the  wonderful  perfection  of  transportation  fa- 
cilities, and  the  awakening  interest  in  governmental  and  munici- 
pal problems. 

Does  not  all  of  this  indicate  most  forcibly  that  the  aid  of 
skijled  accountants  and  well-trained  men  will  be  required  in  in- 
creasing numbers,  and  that  the  future  of  this  profession  of  ours 
has  in  store  for  us  possibilities  whose  magnitude  we  have  not 
yet  comprehended  ?  And  if  this  be  true,  it  is  our  duty  to  make 
suitable  provision  for  the  training  of  this  army  pf  accountants 
who  are  to  have  as  clients  the  future  captains  of  industry ;  and 
if  the  business  of  the  future  itself  is  to  be  conducted  on  a  more 
eflficient  basis  because  of  a  better  knowledge  of  scientific  prin- 
ciples, then  to  keep  on  a  par  with  such  development  the  account- 
ant of  the  future  must  be  equally  efficient  in  his  line  of  work. 
As  an  evidence  of  the  progress  which  has  already  been  made  by 
accountants,  I  quote  from  President  Sterrett's  annual  address 
before  the  American  Association  of  Public  Accountants,  October 
i8,  1910: 

"  A  year  ago  the  Association  had  a  membership  of  765,  exchisive  of 
honorary  members,  and  excluding  the  duplication  of  membership  arising 
through  membership  by  certain  individuals  in  more  than  one  State  society. 
Our  membership  on  the  same  basis  is  now  869,  or  a  growth  during  the 
year  of  104  members,  which  is  considerably  in  excess  of  that  in  any 
previous  year  m  the  history  of  the  Association. 

"  This  increase  of  membership  arises  in  part  through  applications  from 
those  to  whom  certificates  have  been  issued  during  the  year  by  the  various 
State  examining  boards,  but  it  is  also  partly  the  result  of  an  earnest  effort 
on  the  part  of  the  State  societies  to  increase  their  membership  in  their 
respective  territories. 


I 

I  i 


**  Even  though  our  ranks  included  all  holders  of  the  C.  P.  A.  certifi- 
cates, our  numbers  would  still  make  it  apparent  that  accountancy  in 
this  country  is  yet  in  the  comparatively  early  stages  of  development.  In 
England,  with  a  population  much  less  than  that  of  the  United  States,  we 
find  the  Institute  of  Chartered  Accountants  reporting  a  membership  in 
April,  1910,  of  4,130,  while  the  Society  of  Accountants  and  Auditors  has 
an  enrollment  of  some  twenty-three  hundred.  Even  in  the  far-off  island 
of  New  Zealand,  the  Society  of  Accountants  in  June,  1910,  was  able  to 
boast  of  a  membership  of  2,146.  It  is  true  that  a  portion  of  the  latter 
membership  consists  of  men  who  are  not  in  practice,  but  it  is  probable 
from  the  information  in  hand  that  the  members  in  practice  form  as  large 
a  proportion  of  the  total  membership  in  the  New  Zealand  Society  as  they 
do  in  our  own.  These  comparisons  are  in  no  tone  of  discouragement ; 
quite  the  reverse." 

I  might  add  that  in  Canada  where  the  chartered  accountant 
is  held  in  high  esteem,  there  are  at  least  seven  legally  incor- 
porated provincial  institutes  of  chartered  accountants  with  power 
to  hold  examinations  and  grant  degrees,  with  an  active  member- 
ship Hearing  the  300  mark.  The  largest  of  these,  the  Institute 
of  Chartered  Accountants  of  Ontario,  was  incorporated  in  1883 
and  at  present  has  an  active  membership  of  about  140  members. 
Accountancy  education  in  Toronto  has  been  provided  for  by  the 
Chartered  Accountants'  Students'  Association  organized  under 
the  auspices  of  the  Ontario  Institute.  Two  courses  of  lectures, 
junior  and  senior,  are  given  by  leading  chartered  accountants 
during  the  winter  months.  The  topics  covered  are  bookkeeping, 
auditing,  arithmetic,  business  investigations,  commercial  and 
company  law,  municipal  law  and  accounting  systems,  the  bills 
of  exchange  act,  etc.  I  believe  that  McGill  University  of  Mon- 
treal and  Toronto  University  also  have  interested  themselves  in 
the  cause  of  higher  commercial  education,  following  the  plans 
adopted  by  the  various  imiversities  of  this  country. 

Commercial  Education 

Though  England  leads  the  world  in  the  number  and  pro 
fessional  qualifications  of  chartered  accountants,  she  is  indeed 
remiss  in  providing  higher  commercial  instruction.  Advanced 
commercial  education  and  accountancy,  however,  are  now  re- 
ceiving attention  in  several  of  the  English  schools  and  colleges. 
Yet  the  only  institutions  to  whom  much  credit  can  be  given  are 
the  London  School  of  Economics  and  Political  Science,  and  the 
University  of  Birmingham.  Each  of  these  maintains  suitable 
courses  of  preparation  for  the  accountancy  examinations,  yet  in 


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every  case  apprenticeship  is  a  prerequisite  to  the  final  examina- 
tion. For  the  recognition  and  development  of  technical  com- 
mercial education  we  must  look  to  Germany,  for  the  "  Made  in 
Germany  "  trademark  which  means  so  much  to  the  Fatherland 
is  a  result  of  technical  knowledge,  careful  preparation,  and  high- 
ly-skilled workmen.  The  geographical  position  of  England  and 
the  people's  highly-developed  instinct  for  trade,  together  with 
other  influences  aided  her  in  becoming  the  first  commercial  na- 
tion of  the  world.  In  Germany,  however,  and  two  or  three  other 
nations  of  Europe,  their  lack  of  natural  resources,  the  unfavor- 
able geographical  position  and  adverse  circumstances  have 
awakened  the  people  to  the  realization  of  the  fact  that  it  is  only 
a  superior  educational  training  that  will  put  the  merchants  and 
manufacturers  in  a  i)osition  to  compete  with  those  of  England. 
Thus  the  superior  technical  training  of  the  German  commercial 
student  has  secured  for  him  in  all  parts  of  the  world  desirable 
appointments  and  positions  of  responsibility. 

The  progress  of  elementary,  secondary  and  higher  commer- 
cial education  in  the  United  States  is  well  known  and  is  being 
efficiently  taught  in  many  high  schools  of  commerce  and  in 
several  of  our  leading  Y.  M.  C.  A.*s.  The  highly  developed 
courses  of  commerce,  accounts  and  finance  now  being  maintained 
in  these  schools  and  universities  are  due  largely  to  the  foresight 
and  progressiveness  of  business  men  and  public  accountants,  and 
to  the  cooperation  of  educational  authorities.  In  giving  credit, 
however,  I  am  sure  it  would  be  unfair  not  to  recognize  fully  the 
difficult,  discouraging  pioneer  work  done  in  the  interests  of  com- 
mercial education  by  the  business  schools  of  this  country.  Some 
of  them,  indeed  many  of  them,  maintain  very  limited  courses  of 
study,  but  on  the  other  hand  there  are  many  well-regulated  merit- 
orious, high-grade  commercial  schools  that  are  in  every  way 
worthy  of  commendation.  They  are  entitled  to  credit  for  having 
developed  the  efficient  courses  of  study  now  so  popular  in  our 
commercial  high  schools. 

Ample  recognition  of  the  demands  of  commerce,  accounting, 
finance  and  administration  has  been  given  to  the  establishment 
of  regular  courses  of  study  in  some  of  the  leading  universities, 
including  Pennsylvania,  Harvard,  Wisconsin,  Illinois,  Dart- 
mouth, Pittsburgh  and  others.  These  being  regular  day  courses, 
however,  are  designed  to  provide  a  broad  business  training  for 
young  persons  desiring  to  enter  commercial  life,  but  they  do  not 

7 


all  as  yet  attempt  to  prepare  for  the  C.  P.  A.  examinations.  The 
men  who  desii^e  to  qiaalify  as  public  accountants  are  of  course 
occupied  during  the  day,  and  consequently  evening  or  afternoon 
instruction  must  be  provided.  This  provision  was  first  made  by 
the  Universities  of  New  York  and  Permsylvania,  followed  later 
by  several  others.  The  courses  should  cover  the  entire  field  of 
business  science  in  order  to  include  as  many  broadening  subjects 
as  possible,  in  addition  to  preparing  for  private  and  public  ac- 
countancy work,  tiie  C.  P.  A.  examinations,  etc.  Yet  in  outlining 
these  courseis^  great  care  must  be  exercised  to  see  that  the  limit 
of  endurance  is  not  exceeded  by  the  student  who  is  usually  burn^ 
ing  the  candle  at  both  ends  in  order  to  obtain  his  education. 
Evening  schoc^  are  now  estaMtshed  in  nearly  every  State  where 
accountancy  legislation  has  been  enacted,  and  generally  under  the 
auspices  of  t!ie  accountants  who  give  more  or  less  time  them- 
selves to  the  advancement  of  the  courses;  but  notwithstanding 
this  assistance,  it  usually  devolves  upon  school  officials  them- 
selves to  develop  the  course  and  maintain  its  efficiency.  There 
are  mafty  difficulties  attendant  upon  the  condtict  of  suitaWe 
courses  of  sttidy,  especially  in  the  accounting  subjects,  since  es- 
tablished precedents  and  authoritative  text-books  are  not  always 
available.  The  other  subjects  do  not  present  so  much  difficulty. 
Uttdef  such  conditions  the  cooperation  and  kindly  advice  of  the 
practising^  accountants  themselves  is  a  necessity.  If  these 
courses  are  designed  to  prepare  accountants  for  successful  prac- 
tice or  for  examinations,  they  should  by  all  means  be  supervised 
by  the  representative  body  of  accountants,  either  by  advisory 
committees  or  through  required  reports.  It  is  a  well-known  fact 
that  the  evening  school,  no  matter  how  ably  conducted,  cannot 
equal  actual  practice  in  all  respects,  nor  can  those  who  develop 
the  courses  and  give  instruction  keep  in  touch  with  actual  ac- 
counting procedure  at  first  hand  to  the  same  extent  as  those 
who  are  in  constant  practice.  I  am  convinced,  however,  that  an 
authoritative  evening  course  of  study  is  of  great  value  to  the 
yo«mg  accountant,  both  in  preparing  for  C.  P.  A.  examination 
and  in  Ms  professional  practice.  The  theory  and  practice  of 
accounting  will  no  dbubt  soon  be  presented  m  authoritative  text- 
book form,  thereby  providing  trustworthy  instruction  literature; 
but  until  that  time  comes  each  school  must  develop  its  own 
courses  to  a  large  extent.  Those  successful  accountants  who  are 
experienced  from  actual  contact  are  usually  too  busily  engaged 

8 


I 
I 


I 
I 


in  big  things  to  devote  much  time  to  suitable  preparation  for  con- 
tinuous class  service,  consequently  an  occasional  lecture  is  all 
that  can  be  expected  from  them.  On  the  other  hand  very  few 
of  the  most  skilled  practising  accountants  are  qualified  to  conduct 
class  work,  and  even  if  they  were,  the  average  scliool  could  not 
afford  to  pay  the  price  demanded  for  such  services ;  therefore 
the  school  considers  itsdf  fortunate  when  it  can  secure  the 
services  of  a  qualified  accountant  who  can  teach  well  and  im- 
part what  he  knows  to  others,  even  if  he  has  not  liad  the  prac- 
tical experience  of  the  ablest  accountants. 

In  regard  to  the  schools  themselves,  why  is  this  school  or  that 
not  up  to  the  standard  required  by  accountants?  Is  it  because 
of  some  difficulty  that  I  have  mentioned,  or  is  it  due  to  a  lack 
of  cooperation  from  accountants?  We  often  hear  that  such  a 
school  teaches  only  theory  and  is  not  up  to  the  standard  while 
some  other  institution  is  praised  because  it  teaches  according  to 
well-defined  rules  of  practice?  Is  this  criticism  always  just? 
An  investigation  might  cause  praise  instead  of  censure.  It 
should  be  remembered  that  practice  is  simply  applied  theory.  In 
my  own  experience  of  outiining  and  conducting  courses  I  know 
the  difficulties  that  usually  loom  up  and  how  tremendously  im- 
portant is  the  cooperation  of  men  who  are  competent  to  advise. 
No  matter  what  school  is  endeavoring  to  provide  accountancy 
instruction  it  cannot  successfully  do  so  without  your  aid  and 
support.  And  the  men  who  specialize  as  teachers  of  account- 
ancy, though  there  are  few  as  yet,  cannot  be  expected  to  con>- 
pete  on  equal  footing  with  the  leaders  of  the  profession  in 
active  practice  any  more  than  the  professor  of  law  and  materia 
medica,  as  only  a  part  of  their  time  can  be  given  to  outside 
interests.  Yet  the  instructors  are  doing  a  lasting  service  to  the 
profession,  and  if  they  are  really  progressive  and  thorough 
students  themselves  they  can  become  proficient  accountants  and 
are  therefore  entitl"ed  to  the  helpful  consideration  of  those  who 
are  daily  in  the  heat  of  the  battle. 

AcCOU-NiTANCY    NOMENCLATURE 

The  drawbacks  in  providing  more  highly  efficient  courses  in- 
advanced  accountancy  are  due  to  many  causes,  among  which 
are  lack  of  established  precedents,  a  lack  of  reliable  technical 
literature,  a  lack  of  efficient  qualified  instructors,  the  desire  of 
students  to  pursue  only  short  courses,  and  the  absence  of  uni- 


formity  in  principles  and  procedure.  The  need  of  an  established 
nomenclature  is  apparent  to  both  accountants  and  instructors, 
and  the  student  who  is  usually  quick  to  observe  becomes  con- 
fused because  of  the  different  terms  and  varying  methods  now 
in  use.  There  is  certainly  no  harm  to  be  done  in  individual 
cases  where  the  terms  used  are  clearly  understood  by  the  client, 
but  the  majority  should  be  considered  by  giving  heed  to  the 
necessity  for  a  uniform  terminology.  When  the  doctors  dis- 
agree what  are  the  teachers  to  do?  But  if  we  accountants  will 
decide  upon  a  uniform  use  of  terms  and  a  definite  understanding 
among  ourselves  those  who  understand  will  have  established 
precedents  to  follow.  Just  what  should  be  included  in  the  cur- 
riculum of  the  evening  course  is  hard  to  decide,  and  like  all  other 
institutions  changes  must  be  brought  about  to  meet  the  demands 
of  the  times  and  the  needs  of  students.  Certain  subjects  should 
be  compulsory  and  others  elective  in  order  to  conform  with  the 
antecedents  of  the  student,  his  educational  acquirements,  daily 
occupation  and  his  hours  of  service. 

Some  schools  require  all  subjects  to  be  covered  during  a 
three-year  course,  while  others  take  four  years  for  the  same 
work,  the  time  in  each  case  varying  from  three  to  five  evenings 
per  week.  By  permitting  the  student  to  elect  for  himself,  with 
the  advice  of  the  dean  of  the  school  the  number  of  years  he  shall 
devote  to  the  course,  I  feel  that  in  the  end  better  results  can  be 
obtained  than  by  making  rigid  requirements  to  be  followed  by 
all.  The  entrance  requirements  to  the  evening  course  are  of 
considerable  importance  and  should  consist  of  a  high  school  edu- 
cation and  a  knowledge  of  bookkeeping  as  now  wisely  required 
by  our  state  board,  but  as  to  what  constitutes  an  equivalent  is 
a  matter  that  is  very  hard  to  determine  and  which  to  my  knowl- 
edge has  not  been  defined  by  the  board.  This  is  a  question  that 
causes  more  speculation  than  any  other  point  with  which  we 
have  to  deal  largely  because  it  is  not  so  clearly  defined  as  the 
other  matters  in  the  board's  requirements.  Students  may  have 
been  admitted  to  courses  under  certain  standards  of  admission, 
yet  their  remains  the  doubt  as  to  whether  or  not  these  standards 
will  be  accepted  by  the  examiners  as  an  "  equivalent."  Who 
shall  say  that  because  a  young  man  has  not  had  the  benefit  of  a 
high  school  course,  he  is  not  fit  to  become  a  public  accountant? 
If  we  were  to  select  one  hundred  of  America's  ablest  public  ac- 
countants I  fancy  that  many  of  them  would  state  that  they  had 

10 


I  . 


1 


not  attended  high  school.  These  men,  however,  have  educated 
themselves  by  study,  thought,  research  and  a  definite  line  of 
selected  reading.  By  providing  continuation  courses  the  young 
man  of  to-day  who  has  been  deprived  of  a  high  school  training 
can  accomplish  as  much  as  they,  perhaps,  and  if  he  will  begin 
while  yet  in  his  youthful  vigor  he  is  sure  to  reach  the  goal 
sought.  The  time  for  continuation  courses  should,  if  possible, 
as  in  Germany,  consist  of  from  one  to  four  hours  during  the 
day,  at  the  time  most  convenient  for  employers.  This  plan  is 
being  followed  by  many  large  corporations  and  in  most  cases  all 
expenses  are  paid  by  the  employers.  The  only  alternative,  of 
course,  is  evening  instruction,  but  since  excessive  evening  work 
has  a  tendency  to  lessen  one's  efficiency  for  daily  service,  I  feel 
that  provision  for  two  hours  of  instructions  three  or  four  after- 
noons per  week  would  greatly  increase  the  efficiency  of  the  em- 
ployees. 

Courses  of  Study 

The  State  Board  of  Accountancy  in  Pennsylvania  has  given 
a  broad  line  of  the  subjects  required  of  candidates  for  examina- 
tion, under  the  headings  of  business  law  and  general  accounting. 
It  is  necessary,  however,  for  class-room  use  to  subdivide  and 
specialize  by  the  addition  of  other  allied  studies.  In  my  opin- 
ion the  following  subjects  should  be  included  in  an  evening 
course,  admission  to  same  implying  the  usual  credits  and  a  thor- 
ough knowledge  of  bookkeeping,  some  of  which  should  be  com- 
pulsory and  others  elective,  according  to  the  student's  previous 
training,  present  occupation,  and  future  work : 

( 1 )  Advanced  accounting,  preparatory  for  practice  or  for 
C.  P.  A.  examinations,  including  auditing  and  investi- 
gations, systematizing,  etc.,  as  outlined  by  the  board. 

(2)  Business  law,  elementary  and  advanced,  as  outlined 
by  the  board. 

(3)  Advanced  commercial  arithmetic,  covering  those 
divisions  of  chief  importance  to  the  accountant. 

(4)  Principles  of  political  economy. 

(5)  Banking,  credit  and  investments. 

(6)  Private  finance,  including  corporate  organization  and 
management. 

(7)  Science  of  merchandising,  including  advertising  and 
salesmanship. 

II 


(8)  Real  estate  and  conveyancing,  coverii^g  the  practice 
in*  Pennsylvania. 

(9)  One  modern  commercial  language  (German,  French 
or  Spanish). 

( 10)  English  with  special  attention,  to  business  usage. 

(11)  Commercial  and  industrial  geography  and  history. 

(12)  Business  organizatioa  and  management. 

(13)  Transportation  and  puUic  service  corporations. 
(i4)t  Insurance    principles,    insurance   law,    organization 

and  management  of  insurance  companies. 
(15)   Foreig»  exchange  and  foreign  trade. 

Note. — Other  subjects  should  be  included  for  per- 
sons desiring  to  specialize  for  employment  in 
definite  branches  of  commerce  or  industry. 
While  the  various  state  boards  of  accountancy  are  making 
ample  provision  for  young  men  who  are  favored  by  city  resi- 
dence, there  are  thousands  of  capable,  ambitious  men  in  other 
cities  who  cannot  avail  themselves  of  the  privileges  granted  by 
our  evening  schools.  What  is  to  be  done  for  them?  It  is  true 
that  extension  courses  are  being  given  with  success  by  various 
individuals  and  institutions,  but  since  these  courses  are  not  recog- 
nized by  the  examining  boards,  the  student  is  in  doubt  as  to 
the  exact  status  of  such  a  course  after  he  has  completed  it.  In 
connection  with  my  own  extension  course  I  get  hundreds  of 
letters  from  young  men  seeking  trustworthy  information  about 
the  accountancy  profession.  They  want  to  know  how  to  get 
started  in  the  work,  what  its  future  possibilities  are,  how  they 
can  prepare  for  C.  P.  A.  examination,  and  whether  my  course 
is  recognized  by  any  board  of  examiners.  I  point  out  to  them 
that  only  accredited  residence  courses  are  recognized  and  that 
in  lieu  of  this,  experience  is  a  necessity;  yet  there  is  no  doubt 
that  a  good  extension  course  is  advisable  for  anyone  preparing 
for  the  State  examination  or  for  successful  practice. 

The  rules  of  the  board  in  the  matter  of  registration  are  of 
interest  also  because  c^f  the  diiiculty  experienced  by  students  in 
complying  therewith.  The  large  attendance  of  students  in  ad- 
vanced evening  courses  renders  their  registration  in  the  office  of 
public  accountants  an  impossibility,  and  even  when  a  student 
is  registered  he  may  not  be  called  upon  to  render  any  service  to 
his  preceptor.  Many  accountants  do  not  care  to  accept  registra- 
tions on  this  basis,  while  others  may  do  so  with  hesitancy.     My 

12 


point  is  not  one  of  critioism  btit  of  expediency.  What  is  to  be 
•done  for  the  student  who  cannot  secure  a  preceptor  and  there- 
fore must  fiorego  the  benefits  accruing  to  him,  just  because  his 
acquaintance  or  influence  is  not  sufficient  to  command  attention? 
Law  students  at  the  University  of  Pennsylvania  are  permitted 
to  register  with  the  Dean  of  the  Law  School,  and  the  same 
privilege  for  students  of  accountancy  would  seem  like  a  wise 
provision.  In  such  a  case  succe^ful  candidates  in  the  C.  P.  A. 
examinations  might  «ven  have  their  certificates  withheld  until 
a  required  term  o^f  experience  had  been  obtained. 

Let  me  outline  what  in  my  opinion  should  constitute  the  train- 
ing of  the  future  account aiit. 

(i)  For  the  young  man  of  means: 

(a)  The  regular  high  school  course. 

(b)  Four-year  course  of  the  Wharton  School  of  Fi- 
nance and  Commerce,  University  of  Pennsylvania. 

(c)  Three-year  course  in  a  recognized  evening  school 
of  commerce,  accounting  and  finance,  specializing 
in  accounting  and  allied  subjects. 

(d)  At  least  one  year  as  bookkeeper  in  the  office  of 
some  large  corporation. 

(e)  Experience  on  the  staff  of  a  certified  public  ac- 
countant. 

(/)  The  C.  P.  A.  examination. 

Note. — In  case  a  liberal  university  course  is  sub- 
stituted for  (b)  then  (c)  should  be  extended 
and  even  preceded  by  a  good  business  school 
course. 

(2)  For  the  High  School  Graduate: 

(a)  The  regular  high  school  course. 

(b)  Complete  course  in  a  good  business  school,  unless 
this  course  has  been  covered  in  (a). 

(c)  Four-year  courses  (three  evenings  per  week)  in 
a  recognized  evening  school  of  commerce,  accounts 
and  finance. 

(d)  At  least  two  years  of  experience  in  the  accounting 
office  of  some  business  concern. 

(e)  At  least  two  years  of  experience  on  the  staff  of  a 
certified  public  accountant. 

(/)  The  C.  P.  A.  examination. 

•13 


(3)  Pot  the  Elementary  School  Graduate  with  a  part  or  no  high 
school  training,  who  has  to  forego  that  privilege. 

(a)  Complete  course  in  a  good  business  school. 

(b)  Employment  in  the  office  of  a  good  business  con- 
cern. 

(r)  Continuatbn  study  of  selected  subjects  in  evening 
high  school  or  preparatory  school  for  two,  three 
or  four  years  until  admission  is  gained  to  the 

(rf)  Four-year  course,  (three  evenings  per  week)  in  a 
recognized  evening  school  of  commerce,  accounts 
and  finance. 

(e)  Soon  as  capable  to  join  the  staff  of  a  certified  pub- 
lic accountant. 

(/)  The  C.  P.  A.  examination  when  quah'fied. 

ig)  Continue  to  read  both  technical  and  general  liter- 
ature. 


The  ultimate  success  of  each  student  under  the  three  courses 
above  outlined  may  or  may  not  vary,  as  that  depends  largely 
upon  his  own  initiative,  but  in  any  case  the  person  who  would 
succeed  as  an  accountant  must  be  up  and  doing,  must  attend 
strictly  to  business,  must  conserve  his  health,  must  be  honest  and 
trustworthy,  and  must  give  satisfaction  to  his  clients.  In  the 
above  outlines  the  matter  of  registration  with  a  preceptor  is  im- 
plied, though  in  the  case  of  an  experienced  accountant  that  is  not 
a  necessity. 

I  can  only  repeat  that  business  is  now  complex,  intricate, 
scientific,  and  the  schools  which  attempt  to  teach  it  need  a 
greater  equipment  than  was  required  heretofore.  Commerce  is 
now  dignified  by  a  seat  in  the  President's  Cabinet,  and  account- 
ancy is  recognized  in  all  government  departments ;  therefore  the 
need  for  our  advanced  evening  schools  is  more  than  ever  ap- 
parent, and  we  expect  them  to  grow  and  become  more  proficient 
in  work  as  the  years  advance. 

In  closing  let  me  say  that  greatness  will  never  come  to 
the  accounting  profession  without  intelligent  effort,  dignified 
methods,  efficient  service,  thoughtful  progress,  harmonious  co- 
operation ;  and  while  the  year  is  still  young  it  would  not  be  out 
of  order  for  us  to  resolve  that  this  year  shall  be  for  each  of  us 
one  of  service  in  the  interests  of  our  profession  and  in  the  ad- 
vancement of  educational  standards. 

14 


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